Exam Question and Answer on Market Segmentation

Stilettos and Wedged heeled shoes are the must popular shoes on the market. Today must designer shoes are cute, but are too high for some women with flat feet or others who just want to be comfortable, while looking cute. Shoes by design is a shoe company that provides low heeled designer shoes for women of all ages. The company also provides repair services for their shoes. Shoes by design provides services for women in the United States as well as Europe.

What is the main outcome you intend to achieve? Tie it back to the relevant marketing objective.

Price is an important factor in the marketing mix not only because it drives revenue and business sustainability, but also because it acts as a signal of value to consumers. Consumers often use price as a way to gauge quality or exclusivity. Moreover, price can also help segment the market, by customer, product-form, location, time-basis, or price sensitivity. By offering products at different price ranges, a wider range of consumers can

Pricing is important when marketing a product. The determining factor for the pricing is the material, time to make, amount spent on marketing and promotion of the product. The goal in providing such a product that is moderately

We will use print media, direct mail, web media, email, and trade shows to help increase awareness. Different products will use a different mix of each of these promotion media.

Cover the consumer market for homeware and hardware product to make a full range offer to clients.

Our promotional strategy varies based on different target market hence we use social media, store website, word of mouth, networks of friends, family and customers. In addition, we provide each client a store business card. We also have our regular annual and semi-annual sales and posters in store display board. As the market and distribution grow we add more sales staff to make sure, each store staff trained well and adjust to meet the greater demand.

• Direct business relations and distribution of company literature to stimulate client interest and sales leads.

Market segmentation is the fundamental component of a market-based strategy. A market segment is a specific group of customers with distinctive customer needs, purchase behaviours and different descriptive characteristics. (Best, 2000) By categorizing markets into sub sectors, targeting marketing effort in such a way as to meet the technical and other requirements of each of these, organisations maybe able to secure greater competitive position than if they attempted to satisfy the general requirements of the market as a whole.

What is Market Segmentation? According to Investopedia (n.d), market segmentation is a term used in marketing that refers to the aggregating of a potential buyer into groups, or segments, that share common needs and would respond similarly to a particular action in marketing. By utilizing market segmentation it enables Victoria’s Secret to target different categories of consumers who recognize the full value of certain products and services differently from one another. Furthermore, market segmentation is an extension of market research for the purposes of identifying targeted groups of consumers in order to tailor products and branding in a way that it is attractive to that group. There are three general criteria used to identify different market segments: homogeneity, distinction and reaction (Investopedia, n.d).

From a psychographic point of view where activities, interests, buying habits, attitudes, and opinions are concerned, Costco

We positioning as a marketing firm, we focus on particular areas: real estate, and education. We have contracts with the suppliers (developers, school, etc.). Then we find consumer to buy the products. The office set up at St Kilda Rd, Melbourne.

AHC have limited amounts of promotion for its business and currently only rely on its website as well as word of mouth which could realistically only attract a certain number of consumers however if Andy wishes to expand or even increase the number of sales, alternative methods of advertising should be taken into account, for example, below the line promotion such as posters, local radio advertisements, local newspapers and magazines to make people aware of the business, and this way, AHC can widen their market. Andy knows that some facilities offered only target specific people, e.g. the beauty salon is aimed at mostly female members so instead of advertising within the mass market, he could implement personal selling to allow customers to

The process of communicating the value of a product or service to customers, for the main purpose of selling that product or service is known as marketing. The science of choosing target markets through market segmentation and analysis, and understanding consumer behavior while providing superior customer value to the customers is termed as Marketing Management. It can be looked at as one of the most important of the organizational functions and a set of processes for creating, communicating and delivering the value to their customers or potential customers, and a customer relationship management that benefits the organization in a variety of ways.

the Marketing Director by email and to invite him for a face to face discussion